Consider this:
A fragmentation of power, capital and ideas is creating a new map of the world – with lasting implications for investors and policymakers alike.
The evidence is everywhere. Europe beginning to roll back key aspects of the free market even as it manages yet another bail-out of Greece; the failure of the Copenhagen climate change negotiations; a Doha trade round dead in all but name; the emergence of new global governance structures, such as G-20; the flows of macro-finance investments between emerging markets combining state and business interests; China’s “going out” strategy upending traditional vectors of global capital and influence; an Arab Awakening as much defined by its diversity as its aspiration for accountability and legitimate government; the resurgence of nationalist, populist movements across rich and poor parts of the world; a proliferation of hybrid economic and political systems defying old categories of left and right, liberal and authoritarian.
Nader Mousavizadeh – How we got to the archipelago world Reuters 25 July 11
Looking at Nader’s track record we are inclined to believe he is a post-neoconservative, certainly a voice among the Davos cohort, but he may have a point, here’s the thesis:
Instead, what we’re seeing is an emerging world of sovereign states vertically integrating national interests across the public and private sectors – and then going out strategically to compete for resources, growth and job creation. Having previously understood global interdependence as a reason for horizontal integration across markets and regions, states as diverse as Finland, Saudi Arabia, Japan and Mexico are now pursuing distinct, often bilateral, strategies for economic and political security. This is the new dynamic of global competition – one with implications as profound as they can seem contradictory.Nader Mousavizadeh – How we got to the archipelago world Reuters 25 July 11
When we see similar “vertical integration” of nativist xenophobia among the skinheads of our respective cultures it may be worth taking notice.
Sound pretty vague? Not really, what we are talking about here is creating innovative technologies, protecting and extending existing markets and vertically integrating political and diplomatic relationships in a way that retains the traditional blue-collar industrial base of a specific sovereign state while advancing its prospects in emerging markets. It means putting on our “Goldman Sachs” hats when dealing with the world:
For the West, negotiating this new mosaic of power will require a mix of pragmatism, modesty, innovation, and strategic patience. It means, at times, partnering with Chinese investments in Africa instead of trying to convince its leaders that they have more to gain from yet more conditional aid. It means, at other times, accepting that an Egyptian government more legitimate and accountable in the eyes of its people will chart a course less pliable to Western demands.Nader Mousavizadeh – How we got to the archipelago world Reuters 25 July 11
There seems to be no political party in the United States with the ideological tradition or flexibility to take on this challenge. Is that a consequence of our insular obsession with our own politics as we run out the clock with a losing scoreboard?
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